KRAFTON 1Q25 Investor Presentation

Key insights

7 takeaways

01
KRAFTON achieved record 1Q25 financial results with KRW 874.2 billion in revenue (up 31.3% YoY) and KRW 457.3 billion in operating profit (up 47.3% YoY).See it on page 10
02
Revenue growth was driven by strong performance across all segments, led by mobile at KRW 532.4 billion and PC at KRW 323.5 billion.See it on page 18
03
The company is evolving the PUBG franchise into a comprehensive gameplay platform through Unreal Engine 5 integration, user-generated content beta services, and diversified game modes.See it on page 5
04
KRAFTON is diversifying its portfolio beyond PUBG with new projects including the extraction RPG Project AB and life simulation titles like Dinkum Together and Subnautica 2.See it on page 12
05
The company is expanding its Indian market presence through localized content for Battlegrounds Mobile India (BGMI) and the strategic acquisition of the Real Cricket IP.See it on page 14
06
Advanced AI technology, specifically on-device small language models, is being integrated into upcoming titles such as inZOI to enhance user experience.See it on page 13
07
Despite a slight quarter-over-quarter net profit decline due to foreign exchange effects, the company maintains a robust financial position with total assets of KRW 8.3 trillion.See it on page 19

Summary

KRAFTON’s first quarter 2025 investor presentation outlines a period of record-breaking financial performance driven by the sustained growth of the PUBG intellectual property and a strategic expansion into new genres and platforms. The company reported quarterly revenue of KRW 874.2 billion, representing a 31.3% year-over-year increase, and an operating profit of KRW 457.3 billion, a 47.3% year-over-year rise. These results reflect strong performance across PC, mobile, and console segments, with mobile revenue reaching KRW 532.4 billion and PC revenue contributing KRW 323.5 billion.

The core thesis centers on evolving the PUBG franchise into a comprehensive gameplay platform while simultaneously incubating new, sustainable IPs. Key initiatives include the integration of Unreal Engine 5 for core enhancements, the introduction of user-generated content beta services, and the diversification of gameplay modes. Beyond the flagship title, the company is actively developing and publishing new projects such as the extraction RPG Project AB and life simulation titles like Dinkum Together and Subnautica 2. These efforts are supported by a "Community Snowball" publishing strategy, which emphasizes long-term engagement through early access phases, influencer collaboration, and continuous community feedback loops.

Geographically, the company is strengthening its market position in India through localized content for Battlegrounds Mobile India (BGMI) and strategic acquisitions, such as the purchase of the Real Cricket IP. Furthermore, the company is integrating advanced AI technology, including on-device small language models, to enhance user experiences in upcoming titles like inZOI. Despite a slight quarter-over-quarter decline in net profit due to foreign exchange effects, the company maintains a robust financial position with total assets of KRW 8.3 trillion and a focus on long-term, sustainable growth across diverse global markets.